The Toro Company Takes Additional Proactive Actions in Response to COVID-19 Pandemic
The compensation of the company’s senior leadership, including all executive officers, and the Board of Directors is adjusted as follows for the rest of fiscal 2020:
Richard M. Olson, chairman and CEO, is reduced by 30%. Additionally, Mr. Olsonwill make a voluntary personal donation to the Melrose/Hoffman Employee Critical Need Fundwhich was established in 2005 to help The Toro Companyemployees that are experiencing financial hardship.
- Salaries for members of the executive leadership team are reduced by 20%.
- Salaries for all other executive officers, general managers and certain other senior leaders, are reduced by 10%.
The Board of Directors will forgo the cash portion of their compensation and instead donate the pay to the
Melrose/Hoffman Employee Critical Need Fund for thebenefit of The Toro Companyemployees.
Additional measures the company is taking include:
- Reducing salaries for US-based exempt office employees by 3.5% and the workweek for US-based nonexempt office employees to 37 hours per week, each for the rest of fiscal 2020. This is equivalent to a reduction that otherwise would have been realized through a five-day furlough.
- Eliminating the 2020 discretionary investment fund contribution under the company’s retirement plan that would be paid in 2021.
- Eliminating additional broad-based fiscal 2020 merit increases.
- Continuing a hiring freeze on most positions.
The company will continue to monitor the impact of COVID-19 and may adjust its action plans accordingly as the situation progresses. As disclosed previously, the company has already curtailed share repurchases for fiscal 2020 as it focuses on debt repayment.
As a reminder, on
This news release contains forward-looking statements, which are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current assumptions and expectations of future events, and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “goal,” “optimistic,” “anticipate,” “continue,” “plan,” “estimate,” “project,” “believe,” “should,” “could,” “will,” “would,” “possible,” “may,” “likely,” “intend,” “can,” “seek,” “potential,” “pro forma,” or the negative thereof or similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual events and results to differ materially from those projected or implied. Particular risks and uncertainties that may affect the company’s operating results or financial position include: COVID-19 related factors, risks and challenges, including among others, the length of time that the pandemic continues, its effect on the demand for the company’s products and services, the ability of dealers and retailers that sell the company’s products to remain open, availability of employees and their ability to conduct work away from normal working locations and/or under revised protocols, and the ability to receive commodities, components, parts, and accessories on a timely basis through its supply chain and at anticipated costs, and the ability of the company to continue its production operations; worldwide economic conditions, including slow or negative growth rates in global and domestic economies and weakened consumer confidence; disruption at its manufacturing or distribution facilities; fluctuations in the cost and availability of commodities, components, parts, and accessories, including steel, engines, hydraulics and resins; the effect of abnormal weather patterns, including unfavorable weather conditions exacerbated by global climate change or otherwise; the effect of natural disasters and global pandemics, including COVID-19; the level of growth or contraction in its key markets; customer, government and municipal revenue, budget and spending levels; loss of any substantial customer, including mass retailers and home centers for the company’s residential business; elimination of shelf space for its products at dealers or retailers; inventory adjustments or changes in purchasing patterns by customers; the company’s ability to develop and achieve market acceptance for new products; increased competition; the risks attendant to international relations, operations and markets, including political, economic and/or social instability and conflict, tax and trade policies in the
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